A battle is brewing between the federal government and the Canadian Automobile Dealers Association over the issue of making fuel economy labels on new vehicles mandatory.

While CADA said it supports the government’s overhaul of the labeling system, it is opposed to a proposal that would making affixing the stickers on new vehicles compulsory.

“This represents a 1970s solution to a problem that doesn’t exist,” said Michael Hatch, chief economist at CADA. “The reality is that today’s consumer does not rely on paper labels to obtain information regarding the vehicles they buy. The vast majority of consumers get this information online, on their smartphones or through other literature widely available at all dealerships in Canada.”

Currently, the stickers, which are affixed to vehicles by the car manufacturer, are voluntary. The proposal to make them compulsory is part of a Natural Resources Canada review of the label program, under the brand EnerGuide.

“We have no problem with Ottawa saying ‘make the information available,'” said Hatch. “But give dealers a choice between paper labels, brochures for car models or online.”

Guillaume Berube, spokesman for NRC, agreed that consumers have access to a host of web-based resources on fuel efficiency, however, “the labels may also assist those with no Internet access.”

The review is designed to bring Canada into line with fuel economy stickers currently available in the United States. The fuel efficiency labels, which would go into effect for the 2016 model year, would offer more comprehensive information, said Berube.

Current fuel consumption ratings, based on a testing procedure that consists of two test cycles to determine city and highway fuel consumption, “may not always represent the on-road fuel consumption of different drivers because driving habits and conditions may differ from those used in the tests,” said Berube.

The new methodology would be based on five-cycle testing that would incorporate three additional factors, including air conditioner usage, cold temperature operation and higher speeds with more rapid acceleration, he said.

Car makers, not only welcome the changes, they wish they had come about sooner, said Mark Nantais, president the Canadian Vehicle Manufacturers Association, which represents Chrysler, General Motors and Ford.

“We were hoping they’d be in effect for the 2015 model year, but there have been a lot of delays,” said Nantais. “The key thing is why not give consumers the five-cycle test values that are going to be more meaningful. That should be part of the label.”

There have been complaints about the old testing procedure, he said. “The more elaborate test cycles more closely reflects real world driving. You have a better idea of what you’re going to get as a consumer.”

As to whether the labels should be mandatory, Nantais pointed out that car manufacturers currently have a 100 per cent compliance rate.

“Vehicles will arrive with a label at dealerships,” he said. “If a dealer chooses to take a label off, that’s something that is really up to the dealers. But either way, there are mechanisms that, over and above the label, where you can provide information to consumers.”

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